Odfjell Drilling Rig Wins More Work with Equinor

August 18, 2020

The Deepsea Atlantic drilling rig. (Photo: Marit Hommedal / Equinor ASA)
The Deepsea Atlantic drilling rig. (Photo: Marit Hommedal / Equinor ASA)

Norwegian energy company Equinor has awarded Odfjell Drilling's Deepsea Atlantic semi-submersible drilling rig more work in Norway.

Odfjell Drilling said Tuesday that Equinor had elected to use the rig for three offshore wells.

"The wells have been exercised under the Continued Optionality mechanism in the contract entered into between the parties in May 2018, as part of the overall Master Frame Agreement," Odfjell Drilling said.

The rig will start the wells under the new agreement following the completion of the current scope estimated to be in the fourth quarter of 2020. 

"The commercial terms are materially the same as for the recently announced Johan Sverdrup Phase 2 letter of intent that is set to
commence in Q1 2022," Odfjell Drilling said. Bassoe Offshore has estimated the dayrate to be around $280000.

Equinor last week won regulatory approval to use the Deepsea Atlantic rig on the Gullfaks field in the North Sea, offshore Norway. The company will use the semi-submersible drilling rig for production drilling at the field located in the production license 050.

Johan Sverdrup drilling

As previously reported, Equinor and Odfjell drilling last month signed an LoI for the use of its Deepsea Atlantic for the development of the Johan Sverdrup Phase 2 offshore Norway.

The letter of intent for the provision of the drilling and completion services at the next phase of the giant Johan Sverdrup field development is subject to the finalization of the contract. The contract is set to begin in Q1 2022 with a duration of twelve (12) firm wells plus five (5) optional wells.

Odfjell Drilling said that at the time the approximate contract value for the firm scope was up to USD 150 million (excluding any integrated services, modifications/upgrades, and mobilization/demobilization fees).

Further, Odfjell Drilling said that "a notable performance incentive rate" will apply when wells are delivered ahead of target.

The rate for the optional wells is at a premium to the firm wells, Odfjell said, without providing info on how much more expensive the optional well would be.
Odfjell Drilling's the Deepsea Atlantic is a sixth generation deepwater and harsh environment semi-submersible. This unit, along with its sister rig Deepsea Stavanger and Deepsea Aberdeen, is a dual derrick, dynamic-positioned unit of enhanced GVA 7500 design.

The semi-submersible is designed for operations in harsh environments and at water depths of up to 3,000 m. It is equipped with a full conventional mooring spread for operations in water depths of 70 to 500 meters.



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